MANILA—Globe Telecom plans to further expand its Internet service amid its sustained growth in revenues for the past year due to the increase in the number of subscribers and strong demand for its mobile services.
The consolidated revenues for Globe in 2016 reached PHP 120 billion or a 6 percent from PHP 113.7 billion in 2015.
Its core net profit amounted to PHP 16 billion, up by 6 percent year on year from PHP 15.1 billion.
Globe President and CEO Ernest Cu said the company intends to implement initiatives that will further enhance its capacity and coverage to improve the state of Internet in the country.
Cu said Globe will expand its data network by utilizing the benefits of cloud computing to increase the profitability of its corporate revenues.
Globe’s corporate data business improved year on year at PHP 9.9 billion as of end 2016, which was 28 percent higher from the PHP 7.7 billion in 2015, as demand for data connectivity continues to increase.
The strong demand for Internet and domestic leased lines as well as cloud computing solutions contributed to the revenue growth in corporate data business. This was also aided by the contribution from Bayan’s corporate data revenues.
Its traditional fixed line revenues also registered an 11 percent increase year on year at PHP 3.8 billion in 2016, due to strong demand for its new home broadband bundled plans.
Meanwhile, Globe’s mobile revenues grew year on year at PHP 91.9 billion in 2016, from the PHP 91.2 billion a year ago as its customers shift from core voice and SMS in favor of data.
Mobile data has been the biggest contributor to total mobile revenues, outpacing its voice services.
Mobile data services amounted to PHP 34.6 billion in 2016, 25 percent higher than the PHP 27.7 billion reported in 2015. Data traffic grew by 44 percent from 252 petabytes (PB) to 361 PB in the year just ended, as smartphone penetration reached 61 percent due to the positive response to Globe’s expanded data-driven product portfolio.
Voice and SMS revenues remain challenged with the continuing migration to Internet-based applications.
As of end of December 2016, Globe’s mobile subscriber base reached 62.8 million, higher by 12 percent from the 56.2 million subscribers in 2015, which was driven by the record-level prepaid gross acquisitions during the year.
The company has spent around PHP 36.7 billion in capital expenditures to support the growing subscriber base and demand for data. Of the total capital expenditures spent this year, 65 percent was for the data service needs of its customers.
Globe plans to coordinate with various banks for multilateral loans within the second half of 2017.
“As we move forward in 2017, we are optimistic that we will maintain our growth trajectory as we continue to strengthen our leadership in the digital space, through the use of innovation and partnerships with global content providers. Our aggressive investments in our network are designed to meet the country’s future digital demands,” Cu stressed.